Weak Yields, Policy Tightening For BoJ

Market Reviews

The greenback is soft, as well as yields. 10 year yield declined -0.053 to 2.414. This came as a reaction to negative consumer confidence data. CB consumer confidence fell to 122.1 this month. Additionally, investors aren’t confident about Republican tax reform. Still, short term prognosis for 10 year yield remains bullish. Lift from 2.034 should expand 2.621 resistance. Upside impulse is feeble. Breach of 2.314 will enlarge the corrective pattern from 2.621 with further drop and maybe align a test on 2.034.

Summary of opinions of Bank of Japan meetings in December indicated that members started mulling the idea of a rate hike or lowering exchange-traded funds purchases, considering improving economic conditions. Japan retail sales increased 2.2% yoy in prior month. Industrial production was up 0.6% mom. Today, European Central Bank will release its monthly bulletin and the US will announce jobless claims, trade balance, wholesale inventories and Chicago PMI.